I opened a new position with the purchase of Energy Transfer LP (ET)
166 shares @ $15.10 on 3/15/2019.
This increases my forward 12-month dividend income by $205.84 to a total of $8,527.48. I also updated my portfolio page to reflect the change.
I am sorry for the delay on this report. Been busy with traveling and work these past few months. I am happy that things are now settling down. Make sure to connect with me on Twiter and Facebook as I post my stock transactions as soon as I make them.
Energy Transfer is the second Master Limited Partnership (MLP) in my portfolio. The first one is Kinder Morgan, Inc. (KMI).
The company owns and operates one of the largest and most diversified portfolios of energy assets in the United States. Operations include natural gas transportation and storage along with crude oil, natural gas liquids and refined product transportation and storage totaling 83,000 miles of pipelines.
ET has been growing dividends for the past 13 years. It has a 5-year dividend growth rate of 13.4% and a 10-year dividend growth rate of 9.6%. The most recent increase was 3.39%. The company currently sports an 8.22% dividend yield as of this writing.
CFRA analytes expect EPS CAGR of 19% for the next 3 years. Other analytes expect a little lower growth of 13.2%. Either way, they are both great growth rates.
The current dividend payout ratio is 22.5% based on 2019 Funds from Operation (FFO) of $5.52.
Therefore, not only are we getting a company that has a high dividend yield as well a very nice history for dividend growth, but We are also getting a company with a very safe dividend payout ratio.
I find ET to be undervalued, and I recommend it as a BUY at this time. I have a fair value price at $21.19. This means that ET is 43.5% Undervalued based on today’s price of $14.77(5/17/2019).
What do you think about the company? Plan on owning it or already do? or why not?
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